Budi Diesel: Gov’t waives vehicle ownership transfer fees, allows subsidy transfer to family members

A car filling up diesel at a petrol station in Kuching. Photo credit: DayakDaily
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By DayakDaily Team

KUCHING, June 27: The Federal government has announced a three-month waiver of diesel vehicle ownership transfer fees and will allow diesel subsidy eligibility to be transferred to immediate family members as part of improvements to the Budi Madani Diesel (Budi Diesel) programme.

Finance Minister II Senator Datuk Seri Amir Hamzah Azizan said the measures were introduced after the government conducted engagement sessions with the public, small business operators, stakeholders and implementing agencies following the announcement of Budi Diesel on June 22.

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“The government had taken into consideration various concerns and appeals, including cases where diesel vehicles are used by the actual users but remain registered under the names of close family members,” he said in a statement issued on Friday (June 26).

To facilitate updates to ownership records, the Ministry of Transport, through the Road Transport Department (JPJ), will implement a Temporary Exemption Incentive Programme for Diesel Vehicle Ownership Transfer (THM) fees from July 1 to Sept 30, 2026.

The exemption covers THM fees that currently can reach up to RM100, depending on the type of vehicle and registration location.
“The implementation of BUDI Diesel uses vehicle ownership data and active road tax records as part of the eligibility criteria. This exemption gives owners and actual users of diesel vehicles the opportunity to ensure their ownership records accurately reflect actual vehicle usage,” he said.

To ease the process for the public, JPJ service counters nationwide, including those at Urban Transformation Centres (UTCs), will operate on weekends from July 4 to July 26, from 8am to 5pm.

The counters will handle matters related to Budi Diesel applications, including ownership transfers, road tax renewals and other related JPJ transactions.

In another significant improvement, the Ministry of Finance will permit registered diesel vehicle owners to transfer diesel subsidy eligibility to immediate family members who are the actual users of the vehicles.

The move addresses situations where a vehicle is registered under one family member’s name but used on a daily basis by another.

Amir Hamzah said the transfer would be subject to conditions and verification requirements, with details of the mechanism to be announced through official Budi Madani channels once technical arrangements are finalised.

“After listening to public feedback and appeals, the Madani government has agreed to implement these improvements to ensure a smooth rollout of Budi Diesel,” he said.

He reiterated that the targeted subsidy initiative aims to ensure diesel subsidies reach eligible Malaysians while preventing leakages that have cost the country billions of ringgit annually.

Early access to Budi Diesel began today (June 27) for eligible private diesel vehicle users in Peninsular Malaysia, ahead of the programme’s nationwide implementation on July 1. — DayakDaily

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